CGST and IGST
From CGST Central Govt has a major share ( I understand) and a nominal amount goes to State (SGST). Where the services are passed on to different States or locations the booty is share by Centre with those States. So I think only IGST should be levied in the above case. But some people opine that if both the service giver and receiver are in the same place or State it could be only CGST and SGST irrespective of the places of service
I am confused. Can anybody give me solution?
v guhan more
On the facts briefly supplied, as read and understood, the querist is engaged in the business of 'Advertising' . In terms of section 194C of the IT Act, on payment to any resident (the contractor) for carrying out any work ( which as per the Explanation under that section -
see cl. (iv) (a) - includes 'advertising) the payer has to deduct at source. In one's view, even by implication, the payee will have to account for and pay income-tax. The basic point of grave doubt is whether at all, also GST could be justifiably levied on the payee. For, if so levied, that will tantamount to a 'double taxation' of the payee's receipts / aggregate turover.
As regards ITC made a mentoin of, to one's limited knowledge and underswtanding, the concept of credit envisages and will be available provided GST is liable to be paid/ actually both by the suplier (of input) and suplier of output.
The points raised above, being prima facie moot points will, if so considered worth going into, require consultation with a reliable GST cum IT law Expert , in field practice, for his eminent opinion and proper guidance.